Article 59
Exercise Of Financial Powers

(1) The Federation, State and Local level shall
make laws, make annual budget, decisions, formulate and implement policies and
plans on any matters related to financial powers within their respective
jurisdictions.
(2) The Federation may so make necessary policies, standards and laws
on any of the matters enumerated in the Concurrent List and other areas of
financial powers as to be applicable also to the States.
(3) The Federation, State and Local level shall make budget of their
respective levels, and the time for submission of budget by the State and Local
level shall be as provided for in the Federal law.
(4) The Federation, State and Local level shall provide for the equitable
distribution of benefits derived from the use of natural resources or development.
Certain portions of such benefits shall be distributed, pursuant to law, in forms of
royalty, services or goods to the project affected regions and local communities.
(5) If, in utilising natural resources, the local community desires to
make investment therein, the Federation, State and Local level shall accord
priority to such investment in such portion as provided bylaw on the basis of the
nature and size of such investment.
(6) The Government of Nepal shall have power to obtain foreign
assistance and borrow loans. Such assistance or loans shall be so obtained or
borrowed as to have macro-economic stability of the country.
(7) Provisions relating to the management of budget deficits and other
fiscal discipline of the Federation, State and Local level shall be as provided for in
the Federal law.